Lower food prices slowed inflation in November

Lower food prices slowed inflation in November 2017 following four consecutive months of acceleration, the National Economic and Development Authority (NEDA) said.

Based on a report of NEDA-attached agency Philippine Statistics Authority (PSA), headline inflation rate for November reached 3.3 percent, lower than 3.5 percent recorded the previous month.

“Inflation during the last eleven months suggests that the full year average might settle slightly above midpoint, but will still be well within our target of 2 to 4 percent. This already considers expected price spikes owing to holiday season spending this December,” said Socioeconomic Planning Secretary Ernesto M. Pernia on Tuesday.

Inflation for food and non-alcoholic beverages particularly eased to 3.2 percent in November 2017, lower than October’s 3.6 percent. This was the lowest rate recorded since October 2016.

This can be attributed to lower prices of vegetables, sugar, jam, honey, chocolate and confectionery, fruits, oils and fats, and rice.

“We are starting to see year-on-year price declines for ampalaya, cabbage, carrots, tomato, white potato, and imported garlic in the National Capital Region. This signifies that supply is starting to stabilize again,” Pernia said.